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Author Question: The major difference between absolute purchasing power parity (APPP) and the law of one price (LOOP) ... (Read 91 times)

go.lag

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on: Jun 30, 2018
The major difference between absolute purchasing power parity (APPP) and the law of one price (LOOP) is:
 a. APPP deals with the equilibrium exchange rate for one good, and LOOP deals with the equilibrium exchange rate for a basket of goods.
  b. APPP deals with changes in nominal exchange rates for a basket of goods, and LOOP deals with levels of exchange rates for a particular good.
  c. APPP deals with changes in nominal exchange rates for a basket of goods, and LOOP deals with changes of exchange rates for a particular good.
  d. APPP deals the equilibrium exchange rate for a basket of goods, and LOOP deals with the equilibrium exchange rate for one particular good.
  e. None of the above.

Question 2

The value of a nation's currency is a good reflection of:
 a. The nation's wealth.
  b. The nation's international competitiveness.
  c. The nation's income.
  d. None of the above.


eliasc0401

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Reply #1 on: Jun 30, 2018
Answer to Question 1

.D

Answer to Question 2

.D


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